Daimler and BMW put Hungary investments on hold

Europe The industry struggles with lower demand and the threat of higher auto tariffs

Daimler AG and BMW are putting their investments in Hungary on hold as the industry struggles with lower demand and the threat of higher auto tariffs by the United States, business daily Handelsblatt reports.

Handelsblatt citing company sources as saying that Daimler's management board decided to delay the commissioning of a second plant at its Hungarian site Kecskemet by at least a year.

Sources are quoted by Handelsblatt as saying that BMW is still aiming for groundbreaking for its factory in Debrecen, but there are intense discussions on the start-up of the new site. ■